Mutual Fund / Hybrid funds give great returns by protecting you from the volatility of the stock market

Hybrid Funds: The Indian stock market has seen a boom recently, but it is difficult to say how long it will last. Volatility is the nature of the market, and this is why many investors shy away from investing directly in the stock market. If you also want good returns at low risk, then hybrid funds can be an ideal option.

Hybrid Funds: Balanced Investment Strategy

Hybrid funds are a type of mutual fund that invests in equity (shares) and debt (bonds, debentures, etc.). Its main objective is to maintain a balance between risk and return. While investing in equity provides an opportunity for growth, debt instruments provide stability to the portfolio.

Increasing investor confidence

According to recent reports, Rs 28,461 crore was invested in hybrid funds in February, while the withdrawal rate decreased. It is clear from this that due to the volatile market, investors are being attracted to this safe and balanced option. Experts believe that hybrid funds have a mix of equity, debt and commodities, which makes the risk relatively low and potentially offer better returns.

Hybrid funds that have given great performance

Despite the market downturn, many hybrid funds have given investors better returns. Funds like Nippon India Multi Asset, Samco, Edelweiss, Invesco and ICICI Prudential have performed positively even in adverse circumstances. These funds have given double-digit returns in the last one year, which shows the effectiveness of this category.

Choosing the right fund is important

Market experts say that investors should choose hybrid funds based on their financial goals and risk capacity. These funds are especially beneficial for investors who want to avoid investing directly in equities and plan to invest for 3 to 5 years.